Wow Mr Turnbull

Right. I am about to talk politics and maybe even a little bit of economics. If these topics make your brain hurt, tune out now.

You may know that we are currently in a financial down turn AND that the odd person is even starting to throw the recession word around. Downturns are inevitable and since we had such a huge and sustained boom, it isn't a surprise that this downturn is rather painful.

Kevin, our fearless Prime Minister has proposed a plan to do something to ease the downturn in Australia. That being to lob $42 Billion at the problem. All in all it is a pretty good package. A lob of cash up front to people in the hope they will spend it to kick things along (a strategy that worked in December) and a bunch of building and environmental initiatives to keep things ticking along and invest some of the money.

All sounds good right? Well there is a problem. Our idiot Liberal government voted against the bill and for the life of me I can't work out why. So let look at it then shall we...

First Malcolm gave us a few reasons, the biggest one being that the package will put the federal government into deficit.

Now I hate to break his bubble, but that is what the federal budget it SUPPOSED to do during a recession. It also isn't 'really' a deficit as we have $70 Billion in the future fund we can always go grab if we want.

Second he tells us that the lump sum payments don't work. This is wrong (see Decembers retail figures for instance) and wants to hand out some tax cuts instead.

The problem here is that we are already getting tax cuts in July and pretty much everyone has already factored them into their budget. Moving them forward a touch really doesn't add a lot of money or encourage a lot of crazy splurging on the part of the unwashed masses.

He also crows on a bit about 'fiscal responsibility' and 'burdening future generations with debt'. Clearly he doesn't remember last years $22 Billion surplus which would effectively wipe out this years splurge (as it should be).

So on the fundamentals the guy is wrong. But it is the political aspect I really don't get.

First you never ever vote AGAINST giving people money. People like getting free cash from the government. Turning around a saying no to it makes you the bad guy. No amount of spin can change that.

It also gives Labor a lot of ammo to use in the future. You see, if things get any worse (and they will) Labor can turn around and simply point the finger at the Libs. No matter what happens with the bill, just delaying it will no doubt be the cause of all future economic misery.

It's a stupid decision from any angle and a far cry from the brilliance of the Howard years.

Cheers

G.